ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When a country’s central government decides the approximate production levels of different goods and also sets their prices, it is known as a command economy or planned economy.

Detailed explanation-2: -The government makes economic decisions for the good of society. In a pure command economy, all resources are owned by the government, so the government can direct them to produce what is best for society as a whole, rather than what might be in the interests of private individuals.

Detailed explanation-3: -In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.

Detailed explanation-4: -In a command economy, the government makes all the major economic decisions. It controls all means of production, such as raw material, money, land, and industries in a country. The government holds the strings; the people are left hanging.

Detailed explanation-5: -Answer and Explanation: Command Economy is an economic system in which the government makes all the economic decisions. A command economy refers to the economic situation where the public body or the government owns the production in an economy. The central authority controls the production in the economy.